Nayax Ltd.

Hello everyone and welcome to the NIACC's third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the speaker's prepared remarks. As a reminder, this conference call is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then 1 on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the call over to Ms. Virginia Stewart-Gibson. Please go ahead.

Thank you, operator, and everyone for joining us today on this conference call. With me on the call today are Yair Mechmad, NIAC's co-founder and chief executive officer, and Sadiq Manoor, chief financial officer. Following management's prepared remarks, we will open the call for the question and answer session. Our press release and supplementary investor presentation are available on our investor relations website at ir.niacs.com. As a reminder, during this call, we will be making forward-looking statements. All forward-looking statements on our call today are based on assumptions and therefore subject to risks and uncertainties that may cause results to differ materially from those projected. We have no obligation to update these statements except as required by law. You can read about these risks and uncertainties in our supplementary investor presentation released earlier today and our regulatory violence. In addition, today's call will include a discussion of non-IFRS measures Management believes non-IFRS results are useful in order to enhance our understanding and our ongoing performance. However, these measures should be considered as a supplement to and not as a substitute for IFRS financial measures. Reconciliations to Banaras IFRS measure can be found in our earnings press release issued earlier today. All key performance indicators are intended to evaluate our business and property measure factors in a macroeconomic environment to guide and support our decision-making. These key performance indicators may be calculated in a manner different from the industry standards. And finally, please note that all figures in today's call will be reported in U.S. dollars unless stated otherwise. Yair will start the call with key financial and operational highlights. Sadiq will go through the details of financial results and discuss the outlook. With that, I would like to turn the call over to NIAC's CEO, Yair Nekmag. Yair?

Thank you, Virginia, and thank you to everyone for joining us on our third quarter 2023 Earnings Conference Call. Before discussing our strong Q3 performance, I would like to take a moment to say how deeply heartbroken we are about the tragic event taking place in Israel. A priority remains the safety of our employee, and we will continue to give them the flexibility and support needed during these difficult times. We are thankful for the support and thoughtfulness that we have received from our customers, partners, and the financial community. Based on the internal analysis that we conducted, we have not seen any material impact to our operation at this time, and there has not been any material disruption to our supply chain, business continuity, sales of products and services, all the backlog, or employee productivity. Up to 7% of our employees are currently serving as reservists, with their teammates willingly working longer to maintain our productivity level. NYX is a global company providing services and solution and generating revenue across all major geographies. Revenue derived from Israel is only 8% for our full year 2022 and 6% for the nine months ended September 30, 2023. As I reflected on our performance today, I'm incredibly pleased with the strategic direction of the company, the strong and consistent execution of our growth strategy, both near and long term, and the unyielding commitment of our employees to achieve our shared vision and mission. On today's call, I'm going to focus my comments on two areas. I'll briefly highlight key results of our excellent third quarter and some notable achievements during the quarter. Our strong third quarter performance was highlighted by exponentially strong recurring revenue growth, overall gross margin improvement, and accelerated profitability. We delivered another record quarter with revenue of $60.3 million. The current revenue grew 48% year-over-year to a new record at $40.2 million. driven primarily by payment processing fees, which grew 57% over Q3 2022. Tax revenue grew 35%. The strong growth in recurring revenue increased to a new high at 67% of total revenue. Overall, gross margin was 38%, delivering another quarter of margin expansion by the team's relentless focus on improving our hardware growth margin and optimizing our global operation. Building on Q1 and Q2 2023 improvement, we continue to execute our playbook on hardware component cost management and operating expenses management across the business to further derive our profitability. Sagit will have more to say about our profitability outlook later on the call. Adjusted EBITDA accelerated in quarter to $3.5 million, more than doubling from the $1.3 million reached last quarter. This is also significant improvement of $7.2 million to adjusted EBITDA compared to a negative $3.7 million in Q3 2022. This ongoing profitability improvement has been driven largely by the high operating leverage in our business model, which is further compounded from scaling our diverse global business and the added benefits from the past investment we have made to further automate the business. Let me once again walk you through the significant operating leveraging we continue to see in our business model, giving us confidence to achieve our profitability targets. Looking at year-to-date September 2023 over year-to-date September 2022, We've delivered an increase of $46.3 million in revenue and an improvement of approximately $14.3 million to adjusted EBITDA, representing 30.9% adjusted EBITDA as a percent of total revenue for September year-to-date. These results indicate that revenue growth continues to outpace expenses growth and has delivered exponential impact on our operating leverage and instantly flowing directly to the bottom line. Our strong performance to date and business momentum demonstrates how our scalable business model and our capital management decision are putting us well on track towards our targeted profitability. Let's take a look at three key operational metrics that are accelerating our scale and having a direct impact on profitability. First, customer expansion. For the past three executive quarters, we have added roughly 4,000 customers each quarter across our large number of vertical and global footprint, including North America, Europe, Australia, and the rest of the world. We ended 2022 with a customer base of 47,000 customers and finished Q3 at 60,000 customers. While we have successfully won large tier one brand names, such as five-star Primo Water Canteen, Our bread and butter loyalty customers remain SMEs who rely on NIAC's comprehensive technology and solution to increase their revenue, reduce their operational costs, and most importantly, rapidly scale their businesses. In Q3, SMEs still represented approximately 70% of our business. As I mentioned, each quarter, two metrics that I'm particularly proud of and pay close attention to are our net retention rate, which measure our customer loyalty, and our churn rate, which measure our customer satisfaction. In Q3, our net retention rate increased to 145% from 139% last quarter, reflecting the high value and confidence our diverse customers placed on our NIACS end-to-end platform and solution. Our churn rate declined to 3.6% from 4.1% last quarter. Second, our Manage and Connect devices. In Q3, we reached a total number of 874,000 Manage and Connect devices by adding 50,000 devices. This total number of devices facilitated the processing of almost 500 million transactions across 80-plus countries. Over the past three years, from 2020 to 2022, we have grown the number of Manage and Connect devices by a compounded annual growth rate of 40% and roughly the same on a year-to-year basis. During 2023, the growth trajectory continued at a similar pace, driven by robust customer demand. I'm incredibly pleased that as we approach the end of 2023, NICE is in a strong position to reach our growth aspiration of 1 million manage and connect devices that we highlighted as a key milestone during our 2021 TACE IPO. Lastly, our land and expense strategy is working as we continue to rapidly increase and retain our customer base by solving their pain points with scalable solution driven sales approach. This has led to loyal and satisfied customers who become long-term partners and grow with NIAX for an increase in revenue organically through deeper penetration of the customer footprint, as well as additional revenue generating product and services. For example, revenue from new customers in 2018 grew more than five times over the next four years. I would now like to highlight two notable achievements during the quarter of acknowledgement of the great work the team is doing in. During Q3, we made two announcements that strengthened both our core business and one of our key emerging growth engines. NICE received authorization from the United Kingdom Financial Conduct Authority, establishing it as a financial entity. Rekognition is a global financial institution that acts as a fully compliant payment facilitator that simplifies processes for our customers and secures NYX's UK operation in the long term. CoinBridge entered into strategic partnership with GIFT, a global leader of loyalty technology solution. The collaboration marked a significant milestone for a loyalty industry by introducing the world's first open-loop loyalty payment solution. powered via CoinBridge by NIAX, partner technology. Lastly, on October 30th, we announced that we have entered into a definitive agreement to acquire RetailPro International, a global leader in retail point-of-sale software for the attended retail market. We believe this transition is a powerful deal that accelerates the next stage of NIAX's attended retail evolution. RetailPole bring a vast distribution channel of over 80 partners reseller, immediately tripling our distributor network to over 120 partners reseller. This will extend our scale and provide meaningful opportunity to cross-sell our payment solution to RetailPole's large and growing customer base into their extensive distribution channel. So in summary, we deliver a strong Q3 and our performance to date has been consistent with what we have communicated. We have continued to execute our strategic priority and growth plan. Our results throughout the year demonstrate that our business fundamentals remain intact and resilient. Our differentiated growth strategy and value proposition as a global solution provider with a complete end-to-end solution continue to resonate with our diverse global customer base. We continue to benefit from the secular growth trend and consumer behavior shift driving the global and under-penetrated unattended market. We have accelerated the pace of our profitability again. We are scaling the business based on our strong customer expansion, rapidly growing our base of managing connected devices and creating long-term thickness from our land and expand model. With that, I will now turn the call Over to Sagit to provide additional color about our financial performance and discuss our financial outlook. Sagit?